Unfortunately, nowadays most customers do not purchase exactly the same products with every order.
Growing competition in sales, particularly in the B2B market, has increased demand for highly customised products. Businesses who can deliver customisation fare well, earning a glowing reputation for meeting their customer’s needs. However, accurate pricing can be a challenge, which is where CPQ solutions can help.
What Is CPQ Software?
Configure, Price, Quote (CPQ) software is a valuable sales tool that enables sales staff to quickly and accurately produce a price for a product, even if it has complex customisation.
By implementing CPQ software, businesses can transform their sales cycle, making it more productive, efficient, and successful. Staff can focus on striking up the positive relationships with customers that are crucial to securing lucrative sales, confident that their quotations will be accurate and prompt. And, because customers aren’t subjected to extended delays while they await quotations from a supplier, they are less likely to take their business elsewhere.
With a CPQ sales tool, quotes can be accurately tailored for each customer, taking account of:
- ➢ Product customisations
- ➢ Optional features
- ➢ Quantities
- ➢ Economic factors
- ➢ Loyalty discounts
- ➢ Price competition
How Does CPQ Software Work?
There are three stages to the CPQ process:
When a customer contacts a supplier with a particular product in mind, the outside sales team can enter the information into the CPQ software, including any customisations that have been requested. Once this stage has been completed and the quote has been accepted by the customer, the inside sales team can collaborate with the design and manufacturing teams to commence production to the required specifications.
Complex product configurations require complicated pricing structures, often meaning that predetermined prices aren’t feasible. At the pricing stage of CPQ, the software will calculate a fair and acceptable price for customers that is still profitable for your business. Artificial intelligence is used to analyse purchasing patterns and market research to determine the price that customers are prepared to pay.
Additional tools, such as discounting logic, enables sales specialists to apply multiple tiers of discounts, such as volume or distributor discounts, without risk of sales margins being squeezed too tightly.
Once the price and discounts are approved, the customer can review the quote to check terms and conditions, before the final quote is created for approval.
Quintadena are a leading provider of customised CPQ solutions, which are tailored by our experienced specialists to meet the unique needs of our customers. Our competitive pricing, real-time support, and expert training makes us the first choice for CPQ software solutions, whatever your business’s size and structure.
Image Source: Unsplash